Which fund would you choose?

BrockStoker

I can't decide which of two funds to buy based on the research I've done, so all I have left to help me decide between them is past performance. They are both similar funds in the same sector (I won't say which sector/funds just yet since I don't want to bias any replies I get), but I think fund A seems to be the better bet, albeit a very limited window to compare performance due to fund A only having launched late last year.

Which would you choose if you had to choose between the two?

masonic

If I had to choose just on the basis of the information you've provided, I'd go with fund B because it has a longer track record and has done pretty well over 10 years.

ccbrowning

B due to track record. Are these actively-managed? You just don't know if A 'got lucky' with its starting picks, but at least you know B has done pretty well for itself over a long period of time.

ChesterDog

There is insufficient information to make a valid decision.

BrockStoker

Thank you all for the replies.

I agree, it's not much data to go on, but if you were FORCED to choose between the two...

I guess most would go for B since it has a proven track record. Perhaps I should not have revealed that B had a history of good performance which might have made it a bit fairer...

Anyway, here is a bit more info:

Fund A is an ETF index tracker fund with a TER of 0.38% and fund B is a multi-manager OEIC with an AMC of 1.50%.

Would this extra info sway your decisions either way?

Might there be an argument for buying both to average out the overall performance keeping in mind that I would probably only want to invest a relatively small amount in each? I would only want 15-30K invested in the sector in question, which is 3.6% - 7.2% of my total portfolio of investments.

dunstonh

Fund A is an ETF index tracker fund with a TER of 0.38% and fund B is a multi-manager OEIC with an AMC of 1.50%.

Are the volatility risk ratings comparable?

BrockStoker

dunstonh wrote: »

Are the volatility risk ratings comparable?

I can't find any risk ratings for fund A unfortunately.

masonic

BrockStoker wrote: »

I guess most would go for B since it has a proven track record. Perhaps I should not have revealed that B had a history of good performance which might have made it a bit fairer...

Then there would have been nothing to differentiate them.

Anyway, here is a bit more info:

Fund A is an ETF index tracker fund with a TER of 0.38% and fund B is a multi-manager OEIC with an AMC of 1.50%.

Would this extra info sway your decisions either way?

With A being a tracker, history of the ETF is less relevant and presumably the index has a longer history that could be examined against the managed fund. I'm back to undecided. Will you be sharing any other tidbits of information with us?

Linton

BrockStoker wrote: »

Fund A is an ETF index tracker fund with a TER of 0.38% and fund B is a multi-manager OEIC with an AMC of 1.50%.

Would this extra info sway your decisions either way?

Might there be an argument for buying both to average out the overall performance keeping in mind that I would probably only want to invest a relatively small amount in each? I would only want 15-30K invested in the sector in question, which is 3.6% - 7.2% of my total portfolio of investments.

If A is an index tracker and B a multi manager fund, then they are investing in different things with different objectives. A multimanager fund invests in a wide range of assets. An index tracker focuses on one. What assets you invest in is a much larger factor than charges. Comparing any investments over a period as short as 3 months is pretty meaningless, comparing 2 totally different investments in this way is just crazy.

The sorts of questions you should be asking yourself are
1) What are my objectives - timescale, risk/return
2) What investment allocation will meet my needs?
3) What assets am I invested in now?
4) Where do I need to invest more?

Then worry about funds.

I dont see the point of investing a little in a multimanager fund. The purpose of a multimanager fund is to provide a balanced portfolio with one fund. Why would you only want a small %? If you like the multimanager fund put most of your assets there. Otherwise put together your desired collection of niche funds.

Thrugelmir

BrockStoker wrote: »

I agree, it's not much data to go on, but if you were FORCED to choose between the two...

Neither. I would remain sitting on cash.

BrockStoker

masonic wrote: »

Then there would have been nothing to differentiate them.

Point taken, thanks.

masonic wrote: »

With A being a tracker, history of the ETF is less relevant and presumably the index has a longer history that could be examined against the managed fund. I'm back to undecided. Will you be sharing any other tidbits of information with us?

I didn't want to give away too much (perhaps it's irrational fear (??), but worried about others jumping on and driving the value up before I get in there!), but at the same time I don't want to be viewed as someone who is "toying" with the people on here - I'm not. I'm just after honest/unbiased opinions. So I'll reveal the fund identities:

Fund A is: WisdomTree Europe SmallCap Dividend UCITS ETF
http://www.wisdomtree.eu/product/3/equities/wisdomtree-europe-smallcap-dividend-ucits-etf

Fund B is: Threadneedle European Smaller Companies
http://www.trustnet.com/Factsheets/tnuk/FactSheet.aspx?fundCode=ADESCG&univ=O&pagetype=overview